Possible tax break for SoCal homeowners

March 21, 2008 12:00:00 AM PDT

By Leanne Suter

VAN NUYS --

There's some good news for Southland homeowners seriously affected by the housing crunch.Home owners who bought at the height of the housing bubble maybe getting a break on their property taxes now that home prices have taken a plunge.

Click in the Eyewitness News story window above to watch Leanne Suter's report on the reduction of property taxes.

"I thought it was good to lower taxes," said Tomer Moravsky.

"I think it is great that they are doing something to help the people who are really paying taxes. So if they can do anything to help that is a good thing," said Bridget Smith, a homeowner.

The L.A. County Assessor, like many across Southern California, is now re-evaluating homes bought between July 2004 and June 2007, when prices were at there highest.

So far 67,000 properties have been reassessed.

"Forty-one thousand of those are getting reductions and those reductions are averaging about $660 in property taxes," said Rick Auerbach, L.A. County Assessor.

"Saving the money I don't know what I would do. I would probably reinvest it back into the house," said Carla Griffin-Hummel.

As of March the average price of a home in Southern California has dropped 19 percent from its peak.

While owners maybe benefiting on their tax bills for the county it will mean less revenue than expected and that could have a serious impact on the county's budget.

"It is important because we have a child and you think about the future. Less money for other programs," said Gal Moravsky.

"We'll be looking at the property and if it deserves a reduction we will be giving it. We are focusing on the value. My concern is not about the revenue," said Auerbach.